The Federal Reserve on Wednesday left its benchmark federal funds rate range unchanged at 3.50%-3.75%, extending its pause for a sixth straight meeting as policymakers continue to grapple with persistent inflation.
“Inflation remains elevated relative to the Committee’s 2 percent target, partly reflecting supply shocks that have driven price increases in certain sectors, including energy,” the policy statement reads.
“Economic activity is expanding at a solid pace despite elevated uncertainty due, in part, to the conflict in the Middle East. Productivity growth and capital investment are strong,” the statement added. “Employment growth has kept pace with the labor force and the unemployment rate has changed little.”
There were three committee members who disagreed and preferred to increase rates by 25 basis points. Nine voted to keep the policy in place.
Bitcoin rose to over $64,400 after the decision, up more than 1% in the last 24 hours. The S&P 500 and Nasdaq rebounded, paring earlier declines. Gold also rose, up 1.2% on the day.
The decision came after one of the most uncertain pre-meeting preparations in years. Futures markets had assigned about a 65% chance to a hold and a 35% chance to a quarter-point increase, according to CME FedWatch data.
